AliExpress dropshipping in Singapore explained: Guide for business owners

Singapore's eCommerce landscape has been expanding rapidly in the past few years. From 2019 to 2023, the annual gross merchandise value of the country's eCommerce market increased from 2 billion USD to 8 billion USD. In particular, dropshipping through platforms like AliExpress has taken off as a popular business model. It is a low-risk, cost-effective way for entrepreneurs to run an online store without the need for inventory or shipping logistics.

In this guide, we will explore what AliExpress dropshipping is, how it works, and give you tips on how to start your own successful dropshipping business in Singapore. We will also touch on how you can manage your finances using Airwallex, an end-to-end financial operations platform that offers a seamless solution for accepting customer payments, paying AliExpress suppliers, and simplifying bookkeeping.

Aliexpress in Singapore

AliExpress is a massive online marketplace owned by China-based Alibaba Group, one of the world's largest eCommerce companies.

It connects overseas manufacturers, mostly from China, with sellers around the world, offering millions of products, from electronics and fashion to home goods and more.

For business owners in Singapore, using AliExpress for dropshipping can mean lower inventory costs, access to a wide variety of products, and the chance to make good profits thanks to the competitive prices on the platform.

This makes it an appealing choice for those looking to enter the eCommerce market efficiently and effectively.

How does Aliexpress dropshipping work

AliExpress dropshipping offers a simple solution for business owners in Singapore who want to operate an online store without the hassle of managing inventory. Here's how it works:

1. Choose products on AliExpress to list on your online store and set your selling price.

2. Upon making a sale, purchase the item directly from your AliExpress supplier.

3. The supplier will ship the item directly to the customer, so you don’t have to handle it yourself. Most suppliers provide a standard shipping option to Singapore via AliExpress, often offering free shipping for qualifying purchases, with delivery typically taking around 7 to 14 days.

Here are a few advantages of using AliExpress dropshipping:

• Low startup costs: With no need to purchase inventory upfront, business owners can start their eCommerce business with minimal investment.

• Wide range of products: AliExpress offers millions of products from different categories, giving business owners a wide selection to choose from and cater to different target markets.

• Easy scalability: With AliExpress dropshipping, there's no limit on the number of products you can sell. As your business grows, you can easily expand your product offerings without worrying about storage space or inventory management.

• Convenient order fulfilment: With the supplier handling shipping and delivery, business owners can focus on other aspects of their business, such as marketing and customer service.

• Competitive pricing: AliExpress offers competitive prices on its platform, allowing business owners to set their selling prices at a competitive rate and potentially attract more customers.

• Global reach: AliExpress has a global presence in 190+ countries, making it easier for business owners to sell to international customers and expand their target market.

How to start dropshipping in Singapore

Follow this step-by-step guide to launch your dropshipping store:

Step 1: Build your online store

This can be done through various eCommerce platforms such as Shopify, WooCommerce, or Wix. These platforms offer user-friendly templates to help you set up your store quickly. Design your store by choosing a visually appealing theme, and add your logo and colour scheme to establish your brand identity.

Step 2: Set up your payment gateway with Airwallex

You'll need to set up a payment gateway in your store to facilitate transactions. Popular options include Airwallex, Stripe, and PayPal. Airwallex enables businesses to accept payments in 160+ local payment methods in 180+ countries. Our platform offers no-code plug-and-play integrations with popular eCommerce platforms including Shopify and WooCommerce, so you can get your store up and running in no time. Airwallex lets you get and hold customer money in different currencies. You don't need to change it back to SGD, which helps you save on extra fees. You can use these funds for future payments to your AliExpress suppliers in USD or EUR to further save on double-conversion fees.

Step 3: Add products to your store

Browse through AliExpress and select products that fit your chosen niche. Be sure to purchase a few samples to test the product quality before adding them to your store. You can either import products manually and track your product catalogue with spreadsheets, or use dropshipping apps such as DSers or Oberlo to automate this process.

Step 4: Develop a marketing strategy

Once everything is in place, it's time to promote your store and drive customers to your website. Here are some tactics you can use:

• Social media marketing: Utilise platforms such as Instagram, Facebook, and TikTok to showcase your products and engage with potential customers. To make the most out of your marketing dollars, create multiple Airwallex Borderless Card for your employees in each region to manage your ad spend globally and enjoy no international transaction fees and unlimited 1% cashback on all spending.

• Search engine optimization (SEO): Optimise your website and product descriptions with relevant keywords to improve your search engine ranking and drive organic traffic to your site.

• Email marketing: Make an email list of customers who are interested. Send them newsletters or special offers often to keep them engaged and encourage them to buy more products.

Step 5: Fulfil orders and manage customer service

Once you receive an order, you'll need to place a purchase on AliExpress. You can do this by entering your customer's shipping details manually or using a dropshipping app. The supplier will then handle the fulfillment process and deliver the order directly to your customer. All you need to do is to communicate with your customer regarding their orders and provide timely updates on shipping and delivery.

Create an Airwallex account today and use our payment gateway solution to start accepting customer payments from around the world.

Can I dropship branded products from AliExpress?

It's generally not a good idea to dropship branded products from AliExpress unless you can confirm that your supplier has the right to sell those items and that you’re allowed to market them in your store. Unauthorised use of brand names or logos can lead to infringement issues, possible store closure, or even legal action.

Always make sure to provide accurate product descriptions and avoid misleading customers about the brand's authenticity or origins. Being open and compliant with the relevant laws will help keep your store’s reputation intact and steer clear of any potential issues that may come with selling branded goods.

Tips on choosing reliable Chinese suppliers for dropshipping on AliExpress

It is important to work with suppliers that are reliable and reputable to maintain customer satisfaction and business credibility. Here are some tips to help you choose the right Chinese suppliers:

• Review supplier ratings. Suppliers with a minimum of 4.5 store credibility and 95% positive reviews typically indicate reliability and a history of satisfied customers.

• Assess their years of experience. Suppliers with at least 5 years of experience are likely to have a more efficient product manufacturing process, as well as better quality assurance, supply chains, and customer service.

• Check the name and address of the production facility. Suppliers without an address are likely to be resellers or sourcing agents, which means marked-up prices and a higher risk of quality control issues when you're not working directly with the manufacturers.

• Evaluate response time and communication: Effective communication is essential for resolving issues and maintaining smooth operations.

• Make a test order. Request product samples to assess quality before committing to larger orders.

How to pay Chinese suppliers on AliExpress

Once you’ve picked the suppliers you want to work with, the next step is to manage payments for your orders. This is where Airwallex comes in handy. Airwallex is an end-to-end financial operations platform that helps businesses manage their cross-border transactions with ease. Our platform handles everything from accepting international customer payments to paying Chinese suppliers and managing company expenses, all within the same platform.

You can use Airwallex to pay your AliExpress suppliers via cards or transfers, whichever the preference is.

Payment via Airwallex Borderless Cards

Airwallex offers free multi-currency corporate cards for businesses to streamline their company spending in one place. Using the Airwallex Borderless Card, pay suppliers in SGD, USD, or EUR without incurring international transaction fees, and earn unlimited 1% cashback. 

Payment via International transfers

Alternatively, you can transfer money directly to your supplier using Airwallex. Airwallex offers high-speed international transfers to 150+ countries with competitive FX rates and low to no transfer fees. Our platform also provides multi-currency business accounts that support 23+ currencies including CNY, USD, and EUR. This enables you to receive and hold customer payments directly in the currencies they pay you. When you get paid in USD or EUR, you can use these funds to pay your Chinese suppliers on AliExpress directly, saving on unnecessary conversion fees.

Read our article on China remittance to find out more on how you can send money to China from Singapore.

How to choose dropshipping products on AliExpress

When choosing products for dropshipping on AliExpress, here are a few key factors to consider to maximise your success:

• Research market demand. Ensure there is interest in the products you plan to sell.

• Find trusted suppliers. Look for suppliers with high ratings and positive feedback to ensure consistent product quality and reliable shipping.

• Perform a competitive analysis. Study what successful competitors are offering and identify any gaps or unique selling points you can leverage.

• Calculate profit margins. Focus on selling products that have higher profit margins to maximise your return on investment.

Here is a list of the best dropshipping products to sell for profit:

How to manage your Aliexpress dropshipping business

Once you've set up your online store, it's important to continually optimise it to enhance your sales.

Automate order processing

When you start receiving a lot of orders, consider using dropshipping tools like Oberlo or DSers to streamline the process of ordering products, and tracking and fulfilling orders. This saves time and reduces errors from relying on manual spreadsheets.

Scale globally with an international payment gateway like Airwallex

As you grow your dropshipping business, you may want to expand into new markets and sell to customers around the world. To handle this, you’ll want to set up an international payment gateway for accepting payments in various currencies. Airwallex has a great end-to-end solution for managing multi-currency payments and cutting down on costly FX fees. You can easily integrate Airwallex with your eCommerce store using no-code plugins, a hosted payment page, and more. With our payment gateway, you can accept payments in 180+ currencies and 160+ payment methods like WeChat Pay, Alipay, and GrabPay. 

In addition to our payment gateway, Airwallex also offers multi-currency business accounts that allow you to receive, hold, and transfer funds in 23+ currencies. Using our Global Accounts, you can collect and hold payments in the same currency your customer uses and use those funds to pay your AliExpress suppliers in USD or EUR. 

Monitor key performance metrics 

Understand your store's performance by regularly tracking key metrics such as conversion rates, traffic sources, and average order value. This will help you gain insights on customer behaviours, the effectiveness of your marketing campaigns, and overall profitability.

Manage returns and refunds

Dealing with returns and refunds efficiently is crucial for keeping your customers happy. Make sure to have a clear return policy in place and communicate it clearly on your website. When a customer asks for a return, be quick to respond and work with your AliExpress supplier to understand their return policies and how they can help you process returns smoothly. 

Streamline your AliExpress dropshipping finances with Airwallex

Airwallex offers an end-to-end financial operations platform for you to manage all your business payments, saving you both time and money. With our comprehensive solution, you can streamline your payment acceptance process to save on unnecessary conversion fees and gain better control over your expenses at the same time.

Our platform allows you to centralise your business expenditures, including online ads and AliExpress orders, all in one place. With simplified expense tracking and reconciliation, you can minimise manual processes and focus more on growing your business. Plus, our integration with accounting softwares like Xero and Quickbooks makes managing your finances even more efficient.

Use our table to compare the fees and features of Airwallex and other multi-currency accounts commonly used by businesses to pay international suppliers.

Conclusion

In conclusion, dropshipping from AliExpress offers a simple, cost-effective way to start an eCommerce business. By leveraging the vast selection of products and competitive pricing on the platform, you can sell to customers globally without worrying about challenges like managing inventory or shipping orders.

Furthermore, by streamlining your financial operations with Airwallex, you can enhance your business strategy and simplify complex processes such as handling international payments and expense management. This not only makes bookkeeping easier but also boosts overall business efficiency, freeing up time and resources to focus on growing your dropshipping store.

Frequently asked questions

1. How can I manage multiple AliExpress stores efficiently?

Using automation tools for managing your finances and placing orders on AliExpress can save you lots of time and effort. Airwallex's all-in-one solution makes it easy to pay suppliers quickly and keep track of your expenses in one place, even when you're managing multiple stores. With our Expense Management system, you can easily reconcile transactions and integrate with accounting softwares like Xero and Quickbooks to automate your bookkeeping, so you can focus on growing your businesses.

2. Is AliExpress the same as Taobao?

While AliExpress and Taobao are both owned by the Alibaba Group, they serve different customers. AliExpress primarily caters to international buyers like dropshipping businesses, allowing them to purchase products directly from Chinese suppliers in smaller quantities for resale. It also provides global shipping options. Taobao, on the other hand, is primarily a domestic marketplace targeting the Chinese consumer market. Both marketplaces offer a wide range of products at highly competitive prices.

3. What is the most sold item on AliExpress?

With millions of products available, the best-selling item on AliExpress changes all the time. Some of its most popular product categories include electronics, clothing, and jewellery.

4. How to find the original item from AliExpress?

Check the seller's ratings and feedback from previous buyers. Stores with at least 4.5 store credibility and 95% positive reviews often indicate trustworthy sellers with authentic products. When in doubt, contact the seller directly and ask for more details about the product, including pictures, certificates, or guarantees of authenticity.

5. How do I integrate my AliExpress dropshipping store with other eCommerce platforms or marketplaces?

It is relatively straightforward to build your AliExpress dropshipping store with eCommerce platforms like Shopify, WooCommerce, and Wix. These platforms provide templates and plugins for quick store setup. To import products from AliExpress into your store, you can use third-party dropshipping tools like DSers and Oberlo. These tools will automatically place an order with your AliExpress supplier whenever someone makes a purchase in your store.

Sources

1. https://www.statista.com/statistics/1127943/singapore-gmv-e-commerce-market/ 

2. https://www.worldfirst.com/sg/product/collect/ 

3. https://help.aspireapp.com/en/collections/9291524-sending-receiving-transfers 

4. https://wise.com/sg/business/ 

5. https://www.wallex.asia/en-sg/business-solutions/multi-currency-wallets 

6. https://www.worldfirst.com/sg/product/pay/pay-business-partners/ 

7. https://aspireapp.com/global-payments 

8. https://www.wallex.asia/en-sg/business-solutions/global-payments

This publication does not constitute legal, tax, or professional advice from Airwallex nor substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.